Media & Entertainment sector stages a recovery :
A CRISIL report suggests that the Indian media and entertainment (M&E) sector is likely to see a strong 27% growth in revenue in FY22. The sector contracted by 26% this fiscal due to the pandemic.
The report noted that the TV segment has recovered fully. It had a minimal impact of the pandemic as people remained indoors. The print, on the other hand, is recovering at a much slower pace. It is expected to rebound fully only by the end of FY23.
It also highlighted that digital integration is happening at a fast pace. The pandemic accelerated the adoption of over-the-top (OTT) platforms, online gaming, e-commerce, e-learning, e-papers, and online news platforms.
The M & E industry is heavily dependent on advertising to generate revenues. Hence, its growth is entirely dependent on how companies are planning their advertising expenses.
Ad revenue for television has now recovered. The arrival of new content and sports events has vastly helped it. The companies are also feeling confident as demand is returning.
The trend also suggests that digital platforms are emerging as the preferred platforms for advertisers while space is shrinking rapidly for print media.
Ineffective anti-dumping duties :
ISMT and Jindal Saw ltd have written an application to the Directorate General of Trade Remedies (DGTR). The applicants have alleged that despite the anti-dumping duty, steel products from China are still finding their way into the Indian market. They even alleged that there has been a significant increase in the volume of imports.
The existing duty period is about to expire and these companies have demanded the authorities to extend the duties further. They have further expressed the fear that dumping would increase after the expiry of existing duties.
Chinese companies often manage to reroute their products via different countries with full support from their government. That is the main reason why Chinese products succeed in entering India despite anti-dumping duties being in place.
Based on the complaint received, DGTR has now launched a probe into the matter. And, if credible evidence is found, they can continue with anti-dumping duty. The government would even need to introduce clauses to close the current loopholes.
Closure of Sterlite Copper costing India dearly :
International copper prices have hit a record high due to aggressive buying from China.
LME copper prices in January were ~$7,961 per tonne. It is the highest level since 2012. Refined copper prices are also surging and expected to average $6,500-6,800 per tonne in FY21 vs $5,923 in FY20. With a sharp rise in copper prices, India could end up spending up to 30-35% more on importing copper.
India has become a net importer of copper ever since the closure of Vedanta's copper smelter at Tuticorin. In that way, India is paying the price of the closure of that plant. Sterlite Copper plant in non-functional since Madras High Court’s (HC’s) order. The Supreme Court had later continued the stay.
Now with rising copper prices, India is losing out on its foreign reserves. Even the telecom industry is staring at a surge in cost. The Electric and telecommunication industry has a share of 56% in total consumption of copper.
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